HOA BOD sues owner who complains...gets SLAPPED

An interesting case...here an owner complained about deck and siding repairs to self serving directors...who then sued her for complaining. They lost their butts on a SLAPP charge. Read about it by clicking the lonk


COUNTRY SIDE VILLAS HOMEOWNERS ASSN. V. IVIE - Filed February 25, 2011.

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Leaking decks and other moisture intrusion problems leads to suit

Kasdan Simonds Weber & Vaughan LLP | Twenty Five San Clemente Homeowners File Construction Defect Lawsuit Against Pardee Homes

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Del Webb Sued For Lack of Weep Screed on 1400 Home In Nevada

A developer in Nevada is being sued by 1400 homeowners at a development where it was found that weep screed, a flashing termination for stucco to weep water out over as it evacuates a wall, was never installed.

Weep screed costs me about $2.60 for a 10 foot piece...plus a little labor to install them. Little mistake costs big time to fix after wards! Tsk tsk

Nevada's Largest Construction Defect Lawsuit

Chris Saldaña, Reporter

The largest construction defect lawsuit in the State of Nevada is pitting hundreds of homeowners against a well-known developer.

Residents of Sun City Summerlin are suing the neighborhood's developer -- Del Webb -- claiming it failed to install metal strips that protect a home's foundation against water damage.

It is this community in Summerlin where frustration and concern among homeowners is common. They say a small 5-inch piece of metal called a "weepscreed" was not put in place by Del Webb when these homes were built.

Weepscreeds help keep moisture out of dry wall paneling. And now more than 1,400 homeowners have filed a lawsuit. 

READ THE REST BY CLICKING HERE

Nevada Court UpHoldsFair Use" of Others Work In Righthaven vs. Realty One Group, Inc et al

As a blogger, I ofetn use someone else work to comment on, quote from and post some of the work to interest our readers...I always link back to the website where I found it and say "Read the Rest of This Article By Clicking Here". Our goal has always been educational-give people information and they will make good decisions.

In Nevada, a company called Righthaven has been making bloggers lives miserable by siccing their lawyers on them for using copyrighted work that Righthaven buys from newspapers. They have done pretty well by bullying small bloggers who, like me, don't have tons of dough to fight the SOB's. Apparently they've forced monetary settlements from a number of people and small business. 

However, in a delightful ruling recently by a Nevada Court, a suit filed by Righthaven against a Nevada Realtor and blogger was found to be without merit as the court found the blogger to be within the legal boundaries of the fair use doctrine.

The defendant had used 8 lines from a 30 page article, linked back to the article and still got sued...Congrats go to Michael Nelson for his victory over the man...
Read the courts decision by clicking here.

Re-Blog From Construction Law Signal-Pennsylvania Supreme Court Declares Insurance Defense Costs May Not Be Reimbursable

Pennsylvania Supreme Court Declares Insurance Defense Costs May Not Be Reimbursable

Posted by Elise M. Carlin on December 02, 2010 

Jonathan A. Cass, senior counsel with Cohen Seglias contributed to this post.

Your company is sued as a result of an alleged constructive defect. You tender the claim to your insurance company and they hire and pay for a lawyer to defend your company. It is later determined that there is no insurance coverage for the construction defect claim. Can the insurance company force your company to reimburse it for all the costs that it spent in defending the action? The answer depends on the language contained in your insurance policy.

Recently, the Pennsylvania Supreme Court determined that an insurer who assumes an insured’s defense is forbidden from seeking reimbursement of defense costs from the insured unless the policy specifically permits it to do so.

READ AL OF THIS ARTICLE BY CLICKING HERE

Re-Blog From The INSURANCE COVERAGE MONITOR-California Supreme Court Determines That Administrative Proceedings Can Be “Suits”

Saw  this article from a Google alert...

 California Supreme Court Determines That Administrative Proceedings Can Be “Suits”

by William Um on December 3, 2010

In a closely watched case by the insurance bar, the California Supreme Court in Ameron Int’l v. Ins. Co. of the State of Pennsylvania ruled that a proceeding before the United States Department of the Interior Board of Contract Appeals (“IBCA”) constitutes a “suit” that triggers insurance coverage under a commercial general liability policy. In its unanimous opinion published on November 18, 2010, the Supreme Court limited the reach of its prior Foster-Gardner v. National Union Fire Ins. Co. decision, which rigidly defined the term “suit” as a court proceeding initiated by the filing of a complaint.
The proceeding at issue in Ameron was a federal adjudicative proceeding before an administrative law judge of the former United States Department of IBCA. The proceeding involved “22 days of trial, numerous witnesses, and substantial evidence,” and involved many of the same procedural requirements as a normal lawsuit filed in a court of law. In the IBCA proceeding, witnesses testify under oath and are subject to cross-examination by opposing counsel, and evidence is presented subject to the Federal Rules of Evidence. After considering all these factors, the Supreme Court determined that given the nature of the quasi-judicial proceeding before the IBCA, a reasonable insured would expect that the IBCA proceeding was the equivalent of a “suit” and, therefore, would expect the policy to provide coverage for defense of such proceedings.

This case is significant because the Supreme Court showed a willingness to carve out an exception to the “bright-line” standard set forth in Foster-Gardner that only a lawsuit filed in court could constitute a “suit” as that term appears in most general liability policies. Foster-Gardner was decided by a sharply divided Supreme Court at the time with a critical dissenting opinion by Justice Kennard. In Ameron, Justice Kennard wrote a concurring opinion, wherein she reiterated her strong belief that Foster-Gardner was wrongly decided. Although Justice Kennard would prefer that Foster-Gardner be overruled, she believes that the Ameron decision “is at least a step in the right direction.”
READ THE WHOLE ARTICLE AT INSURANCE COVERAGE MONITOR BY CLICKING HERE.

Poor Basement Waterproofing Work Leads to Lawsuit in VA

Lawsuit Over Townhome's Construction

Posted: Nov 22, 2010 7:39 PM PST

Reporter: Mark Kelly l Videographer: Sally Delta Goin

Lynchburg, VA - The owner of a Lynchburg townhome says part of his home was designed poorly - rain has flooded the basement 16 times in three years. Now, he's suing the developers, the builders, and the homeowners association at Sterling Park.

Monday, a judge allowed the case to move forward.

Michael Bowers says the outside of the house just wasn't built right. He's an engineer and he collected a binder of evidence he says proves it.

Bowers' basement looks beautiful now. But, Bowers says what is now meticulous was once moldy.

"I had to rip up the carpet up to here and this entire room was moldy," said Bowers.

He redid the basement with water durable materials, making the moldy new again. But the transformation wasn't cheap. He sank another $7,000 into a $12,000 finished off basement. He says someone built his townhome wrong.

"When all the water around here drains, it floods right to my back door, goes in right through the brick or under the house, so it causes this whole drainage or flooding problem," said Bowers.

But he says the players - developers, builders, the homeowners' association-- are all passing the buck.

"You contact one and they go, 'Well, you really need to contact the developer,' said Bowers. READ THE REST BY CLICKING THIS LINK

From The Denver Post-Deck collapse/water intrusion issues lead to suit, Denver condo-complex HOA wins judgment for defects.

The 40 Madison Homeowners Association in Cherry Creek has been awarded a $4 million judgment in Denver District Court to pay for construction defects at the 27-unit condominium complex.
The judgment, which will be paid by Madison Garden LLC, J&N Management and Len Goldberg, addresses construction defects involving water damage that resulted from improperly installed windows, roofs, decks and stucco. Several of the decks collapsed because of water intrusion and structural problems.
The homeowners association was represented by Chris Rhody of the McKenzie, Rhody & Hearn law firm.


Read more: Denver condo-complex HOA wins judgment for defects. - The Denver Post http://www.denverpost.com/business/ci_16643300#ixzz15z8G9fVD

Re-Blogged From The Critical Path-Resolving Construction Defect Cases: Are Arbitration Provisions in CC&R's Enforceable?

Saw this blog post by Ron White of Ron White Mediation...passing it on for our readers edification...

Resolving Construction Defect Cases: Are Arbitration Provisions in CC&R's Enforceable?

In construction defect cases there is often a dispute within the dispute: should the case be prosecuted in a court of law or proceed under the terms and conditions of an arbitration provision? There are rational reasons for selecting arbitration over a court or jury trial. Many believe that arbitrations are more cost effective than jury trials, for example. However, parties who arbitrate their disputes give up the constitutional right to a jury trial and their appellate rights are generally restricted, among other things.
Real estate developers often prefer arbitration over jury trials for various reasons, not the least of which is the belief that they would fair better in front of an experienced construction law arbitrator than they would in front of 12 jurors who probably have little or no understanding of the construction industry.

READ THE REST OF THIS BLOG BY CLICKING HERE

 

When Decks Fall of Building With People on Them, They Will Sue Later On...

Couple file lawsuit in collapse of deck

October 15, 2010

BY STEVE METSCH

A Park Forest couple injured in a Tinley Park deck collapse last month have filed a lawsuit against the homeowners, the developer and a homeowners association.
The seven-count lawsuit filed Wednesday in Cook County Circuit Court names as defendants the Odyssey Club Development, Odyssey Club Umbrella Association, and Bruce and Ruth Watson, who were hosting a gathering when the deck collapsed. The suit seeks more than $350,000.
The plaintiffs' attorney, Todd Smith, said "a jury will ultimately determine the appropriate damages."
Donald and Marilyn Pohlhammer claim they were injured Sept. 11 when a second-story deck attached to the back of the Watsons' townhome in the first block of Iliad Drive collapsed with several people on it while the Watsons hosted a gathering for Ruth Watson's women's association.

Read the Rest of this Article By Clicking Here

Tiled Deck Failure-Lawsuit Over 300K Worth Of H2O Damage to 4.5 Mil House

Fear Not Law blog has a great case on a tile job on decks that failed...read it here there's a lesson somewhere in that mess...

http://www.fearnotlaw.com/articles/a...952.html#_ftn2

WA Supreme Court: State Statutes of Limitation Do Not Apply in Arbitration on Construction Defects

WA Supreme Court: State Statutes of Limitation Do Not Apply in Arbitration

The Washington Supreme Court handed down a surprising and perhaps monumental holding on Thursday. In Broom v. Morgan Stanley DW, Inc., No. 82311-1 (7/22/10), the Court ruled that Washington statutes of limitations are not applicable to arbitration proceedings. The ruling perhaps creates an opening for claimants who have arbitration clauses, but thought their claims had expired.
The theory behind the Court’s ruling is that the state’s statutes of limitation require “actions” or a “suit” to be filed in order to be effective, do not apply to arbitration proceedings, which are not “actions” or “suits” as defined by law. Absent contractual agreement to the contrary, the Court will not impose those statutes of limitation in an arbitration proceeding.

READ THE REST BY CLICKING HERE

 

San Fran Based Swinerton Builder's Settles Oregon CD Lawsuit for 42 Million

Business torrents

Economic news

Settlement reached in $42 million construction defect case

Written on July 24, 2010

A confidential settlement has been reached in what may be the largest construction defect lawsuit in Oregon history.
The case was filed Aug. 8, 2008 in Multnomah County Circuit Court by Wyndham Resort Development Corp. and The Resort at Seaside Condominium Association against Swinerton Builders, a San Francisco-based general contractor.
The roughly $42 million lawsuit accused Swinerton — which was operating in Oregon as Swinerton Builders of Oregon — of breach of contract, negligence and breach of warranty for construction defects at The Resort at Seaside, an eight-story, 414,970-square-foot beachfront condominium completed in 2003.

READ THE REST BY CLICKING HERE

Lawsuit Florida Roofing Consultant Servcor International Sues Bayer AG Subsidiary for More Than $50 Million, Alleges Drunken Executive Breached Agreements, Botched Massive Airport Contract

Found info on this lawsuit at THE URETHANE BLOG

ST. PETERSBURG, Fla., Feb 15, 2010 (BUSINESS WIRE) -- In a lawsuit that details the complexities of working with large multi-national corporations on government contracts, Florida roofing and construction industry consultant Servcor International recently sued a Bayer AG subsidiary for more than $50 million plus punitive damages. Servcor alleges that Bayer breached its partnership agreement with Servcor when it shut Servcor out of a $15 million airport roofing contract. Bayer further violated its fiduciary duties to Servcor following a significant ethical breach by a Bayer executive who leaked confidential information to a roofing contractor customer and Servcor competitor. The suit alleges that the national sales manager disclosed the information while intoxicated at a business dinner.

The 32-count complaint names Bayer MaterialScience, LLC, a manufacturer of the components and materials used in spray-on polyurethane foam (SPF) roofs. Bayer MaterialScience is a subsidiary of Bayer AG, the German conglomerate best known in the United States for aspirin and other pharmaceutical products. The suit also names Insulated Roofing Contractors, a Kentucky roofing company, and Mike Gomez Construction Consultants, Inc., a Miami general contractor. The suit alleges breach of fiduciary duty, breach of contract, negligence, fraud and deceptive and unfair trade practices by Bayer, the existence of a conspiracy involving all defendants, and counts against IRC and/or Gomez for fraud, negligence and interference both with contractual and advantageous business relationships.

"We brought a significant contract to Bayer, only to have it taken from us following the inexplicable, drunken actions of a Bayer executive," said David Looney, president of Servcor International. "The breach of duty and conspiratorial acts of the defendants harmed our company's present and future sales as well as damaged the ultimate consumer."

According to the complaint filed in Pinellas County, Fla. Circuit Court by Servcor attorney Daniel L. Moody of Tampa Bay area law firm Moody and Shea, P.A., Servcor was not only a distributor of Bayer's roofing products but also Bayer's business partner in many roofing related services while also providing business strategies to increase Bayer's market share. Servcor also built a strong relationship with the Miami-Dade Aviation Department which specified materials and services co-branded by Servcor and Bayer on a 10-acre roofing project at Miami International Airport, saving the county over $10 million. According to the complaint, the drunken disclosure of confidential information by Bayer's sales manager set off a string of events wherein Bayer conspired to intentionally cause financial harm to Servcor and to put Servcor out of business.

Servcor International provides commercial roofing and waterproofing services to both consumers and product manufacturers. More information about Servcor is available atwww.servcorintl.com or by calling (727) 894-3415. A copy of the lawsuit is available athttp://servcorintl.com/media.pdf.

SOURCE: Servcor International

http://www.marketwatch.com/story/florida-roofing-consultant-servcor-international-sues-bayer-ag-subsidiary-for-more-than-50-million-alleges-drunken-executive-breached-agreements-botched-massive-airport-contract-2010-02-15?reflink=MW_news_stmp

From Sacramento Business Journal-Law firm sued over local construction defect case Plaintiffs say they were kept in the dark about settlement proceedings

A Southern California law firm that has won more than $17 million from construction defect court settlements in the Sacramento area is being sued by former clients for legal malpractice.

Eleven local parties allege Lee Jackson, a partner in the Santa Monica office of Milstein, Adelman & Kreger LLP, misled them and settled a construction defect lawsuit against U.S. Home Corp. for less than 10 percent of the estimated cost of repairs.

The lawsuit, filed June 18 in Sacramento County Superior Court, alleges negligence, breach of contract, breach of fiduciary duty and fraud on the part of the Milstein firm. The suit demands damages of $1.5 million plus interest, punitive damages, fees and court costs.

“These people don’t feel they got adequate representation,” said Eugene Haydu, a Sacramento attorney who represents the plaintiffs. “We (attorneys) have a special duty to homeowners. Most of this is brand new to them and they can be taken advantage of — that’s what I think is most egregious.”

Read more: Law firm sued over local construction defect case - Sacramento Business Journal

Someone's Gonna Pay for this one...Extensive Construction Defects Financially Impractical to Repair, Building Will Be Torn Down

OUCH! Defects in the slab will force this apt building to be emptied of tenants and torn down...

See more news releases in: Real Estate, Residential Real Estate, Construction & Building, Public Safety

 

Belltown Apartment Building to Be Vacated and Dismantled

 

 

Owner cites expert reports on construction defects in nine-year-old building

SEATTLE, April 10 /PRNewswire/ -- Carpenter's Tower, LLC, the owner of the 25-story McGuire Apartments in the Belltown area of Seattle, today announced plans to vacate the building at Second Avenue and Wall Street over the next several months due to extensive construction defects which are financially impractical to repair.
"While there are no imminent tenant safety issues, the experts involved in the investigation and repair of the building have indicated that there will be structural issues that could present safety issues by 2011 and beyond," said Brian Urback, with Kennedy Associates, the real estate advisor for Carpenter's Tower.  "The McGuire is not in imminent danger of a structural failure and the experts have advised that the building be vacated by the end of 2010.  Under the circumstances, we are taking steps to vacate the building over the next several months and to help our tenants relocate.  Since the necessary repairs are impractical, the decision of the owner is to dismantle the building."

READ THE REST BY CLICKING HERE

Arizona Supreme Court Clarifies Economic Loss Doctrine

Arizona Supreme Court Clarifies Economic Loss Doctrine

By Thomas A. Stoops

STOOPS, DENIOUS, WILSON & MURRAY, P.L.C.

            The recent Arizona Supreme Court opinion in Flagstaff Affordable Housing, L.P. v. Design Alliance, Inc., CV-09-0117-PR, clarified the application of the “economic loss doctrine” which bars plaintiffs in certain circumstances from recovering economic damages in tort. The Supreme Court noted that it had previously applied the economic loss doctrine only in products liability cases but now extended it to construction defect cases, and held that a property owner is limited to contractual remedies when an architect’s negligent design causes economic loss but no physical injury to persons or other property. The Supreme Court catalogued a number of confusing and apparently inconsistent holdings dealing with the application of the economic loss doctrine and attempted to clarify its application. The Court extended the economic loss doctrine to design professionals in construction defect cases, observing that it had not addressed the issue of economic loss doctrine since the 1984 case of Salt River Project Agricultural Improvement and Power District v. Westinghouse Electric Corp., 143 Ariz. 368, 694 P.2d 198 (1984).

Because of a good deal of confusion about the definition of the “economic loss doctrine” the Supreme Court began by clarifying terminology. The Court’s definition of economic loss is...READ THE REST BY CLICKING HERE

In Texas, Justice is Served-Perry Homes Loses CD Suit, HO's Awarded 58 Million

An elderly couple who since 2000 have been battling Houston-based Perry Homes over construction defects in their home in suburban Fort Worth, Texas, on Monday were awarded $58 million in damages by a jury in a Tarrant County court. That verdict has been characterized in press reports as a sharp rebuke of Bob Perry, Perry Homes’ owner and one of the state’s most powerful and politically influential businessmen.

The jury awarded the homeowners, Bob and Jane Cull, $7.1 million in actual damages and $40 million in punitive damages against Perry Homes. It also awarded $7.1 million in actual damages and $4 million in punitive damages against the builder’s warranty provider, Houston-based Warranty Underwriters Insurance.

Perry Homes referred all questions to its spokesman, Anthony Holm, who called the verdict “jackpot justice--absurd by any measure and an abuse of the legal system.” He said Perry Homes would “address these matters with a trial court, and if necessary, appeal.”READ THE REST OF THIS STORY BY CLICKING HERE

HOA IN FLORIDA SUES-DECKS FALLING OFF THE BUILDING< LEAKY WINDOWS...and the list goes on. See the Video too

* Video
* Photo

HOA sues home builder

Regular Photo Size
HOA suing builder

Updated: Thursday, 10 Sep 2009, 1:51 AM EDT
Published : Thursday, 10 Sep 2009, 1:51 AM EDT

* MELISSA DIPANE | FOX 35 News

ORANGE COUNTY, Fla. (WOFL FOX 35) - Moldy roofs, missing stucco and porches completely removed. It doesn't look like home sweet home but for many residents in the Phillips Bay condo community it will have to do.

Brock Shields is the former homeowners association president for Phillips Bay and says the construction woes are never ending.

"It's been happening since 2001. There have been issues we thought it could be patched and fixed but overtime its just systematic through the whole entire place," said Shields.

Shields has a leaky roof and windows that soak the inside of his home when it rains. He says he got it lucky.

About a year ago, residents were told to remove furniture from their balconies and patios because if they didn't they would be in danger of collapse. Now, many have plywood covering the bottom half of their sliding glass doors and second floor patios have been removed.

One resident's patio has been condemned after water seeped through the roof and rotted the wood.

Stucco has been ripped off the buildings in spots so contractors can check on proper placing of hurricane straps. Something Ulysses Roman says caused massive cracks and leaks in his home.

However leaks weren't the last of Romans problems. He found slits through many of the studs in his bathroom walls.

"There's a slit that goes probably 90 percent of the stud, said Roman. My problem is that okay if you have one that's fine but we had numerous ones just in the shower hop alone."


READ THE REST BY CLICKING HERE

From the RENO GAZETTE JOURNAL- Nevada contractors want defect laws changed

This article on construction defect's repair process in Nevada came out yesterday...

Homeowners, contractors and subcontractors gave state lawmakers varying viewpoints on Nevada's law governing construction defects, though most were of the opinion that the law needs to be adjusted.

"I think there is a little tweaking that is going to have to be done," said state Sen. Maurice Washington, R-Sparks, a member of the Senate Judiciary Committee that received the testimony during a hearing about construction defect laws and Chapter 40 of state law.

"The Chapter 40 process is slow, expensive and isn't working," said Josh Griffin, representing the MGM Mirage that is building a

2,392-unit residential project in Las Vegas.

Steve Hill, chairman of the Construction Coalition, agreed.

"Chapter 40 is such a convoluted process; it does more harm than good," he said.

Three homeowners who used the Chapter 40 process to have construction defects fixed on their properties said it is invaluable.

David Babel of Reno said he received no satisfaction from the builder of his home despite phone calls and face-to-face meetings but was able to get his home fixed with the Chapter 40 process.

Read the rest of the article by clicking on our headline!